Saudi Arabia’s Agriculture and Livestock Investment Company (SALIC) and the UAE’s Al Dahra agricultural firms are setting up a $5 billion Saudi Riyal ($1.3 billion) joint venture to invest in the Black Sea area.

According to the venture’s CEO, Abdullah Aldubaikhi, the investments come as part of the two countries’ food security strategy.

Investments will be in grains and livestock and will be made across 10 countries overlooking the Black Sea including Russia, Ukraine, Romania, Hungary, Belarus and Bulgaria.

“Investing in agriculture abroad is very important for Saudi Arabia to compensate for the grains not being produced locally, we are part and parcel of this strategy,” Aldubaikhi said.

Aldubaikhi added that investments will be made via acquisitions and will include farmland, logistics and storage.

Saudi King Salman bin Abdelaziz recently concluded a visit to Russia, where he agreed investment deals worth billions of dollars with Russian President Vladimir Putin.